An abolitionist, Tappen “kept tabs on other citizens of the community, and as a merchant he had to extend credit to people. Other merchants would come to him” to inquire about the credit worthiness of potential customers, and Tappen “found out he could sell this information.” Tappen founded The Mercantile Agency, the nation’s first credit bureau, in 1841.O’Connor said that the formula for credit scoring weighs heavily on paying bills on time, which represents 35 percent of the FICO score, and outstanding debt, which is factored at about 30 percent. The balance of the factoring for the total score relies on credit history, the types of credit utilized, and how often a person’s credit report is pulled to be checked by lenders. The latter can create a lowered score except under certain circumstances – such as shopping for a home mortgage – and within specified time limits.The top FICO score is 850, but those with scores 720 and over will receive the best rates and loan terms said O’Connor. If your FICO score is below 600 it’s trouble and your credit must be fixed.O’Connor noted that over 25 percent of the population has no credit score, and for those that do most don’t know what the FICO score is. In addition, millions of Americans are jeopardized by inaccurate credit scores and should annually check their credit reports.
GMSP: Credit has a fascinating history and must be guarded carefully
January 06, 2006
Santa Paula News
Credit has a fascinating history, but the lure of spending cash not in hand must be controlled and treated with respect, according to a December Good Morning Santa Paula! speaker.
By Peggy KellySanta Paula TimesCredit has a fascinating history, but the lure of spending cash not in hand must be controlled and treated with respect, according to a December Good Morning Santa Paula! speaker. Bunnin Automotive Group/Shane Morger hosted the Chamber of Commerce sponsored event, held at Logsdon’s at the Santa Paula Airport.Moderator Ben Schuck announced that architect and community activist Doug Nelson has been selected 2005 Citizen of the Year, Automotive Racing Products (ARP)/Hozy’s the Business of the Year, and the East Main Street Kulwiec building was recognized for being the outstanding Restoration of Year. The dinner honoring the recipients will be held January 21, noted Schuck.Michael O’Connor of Team O’Connor/Proline Mortgage said that his company has affiliated with Century 21-Buena Vista, which has opened a new office on South Victoria Avenue in Ventura, and “I’m happy to be there with Kay Wilson-Bolton,” the owner of the real estate firm. Identification theft, which utilizes the victim’s credit, is the fastest growing white-collar crime, said O’Connor, which can ruin the victim’s credit worthiness and destroy FICO scores used to establish loan rates.Credit as we know it was invented by an early American merchant, Lewis Tappen, a Calvinist. “They didn’t believe in credit, so imagine how he would feel today,” noted O’Connor, telling a joke centered on a Larry King interview of Satan. After King names all the “terrible things” done by Satan, he asks what is the most horrible thing he has done. “Satan smiles, his eyes twinkle: ‘I did invent credit cards,’ ” said O’Connor.
